Correlation Between PlayAGS and DraftKings
Can any of the company-specific risk be diversified away by investing in both PlayAGS and DraftKings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PlayAGS and DraftKings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayAGS and DraftKings, you can compare the effects of market volatilities on PlayAGS and DraftKings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PlayAGS with a short position of DraftKings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and DraftKings.
Diversification Opportunities for PlayAGS and DraftKings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between PlayAGS and DraftKings is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and DraftKings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DraftKings and PlayAGS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PlayAGS are associated (or correlated) with DraftKings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DraftKings has no effect on the direction of PlayAGS i.e., PlayAGS and DraftKings go up and down completely randomly.
Pair Corralation between PlayAGS and DraftKings
Considering the 90-day investment horizon PlayAGS is expected to generate 2.66 times less return on investment than DraftKings. But when comparing it to its historical volatility, PlayAGS is 9.87 times less risky than DraftKings. It trades about 0.13 of its potential returns per unit of risk. DraftKings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,928 in DraftKings on September 20, 2024 and sell it today you would earn a total of 144.00 from holding DraftKings or generate 3.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PlayAGS vs. DraftKings
Performance |
Timeline |
PlayAGS |
DraftKings |
PlayAGS and DraftKings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PlayAGS and DraftKings
The main advantage of trading using opposite PlayAGS and DraftKings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS position performs unexpectedly, DraftKings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DraftKings will offset losses from the drop in DraftKings' long position.PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS vs. International Game Technology |
DraftKings vs. Light Wonder | DraftKings vs. International Game Technology | DraftKings vs. Everi Holdings | DraftKings vs. PlayAGS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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